Tag: meaning of bill of exchange

Questions Related to meaning of bill of exchange

A bill given to a creditor is called bills payable.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. True

  2. False

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Correct Option: A

The total of Bill Payable Book will always show ____________ balance.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Debit

  2. Credit

  3. Nil

  4. None

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Correct Option: B

_______________ is real account in nature and also an asset and will always show debit balance.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Bill Receivable

  2. Bill payable

  3. Debtor

  4. Creditor

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Correct Option: A

Bills Payable book is to keep a record of ____________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Bills Payable to Creditors

  2. Bills Received From Supplier

  3. Credit Purchases

  4. Credit Sales

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Correct Option: A
Explanation:

There are various subsidiary journals maintained to record various transactions. This includes sales day book, purchase day book, bills receivable book, bills payable book etc. 

Bills payable book is a subsidiary book which is used to records all bills payable to creditors.

Bills Receivable book is to keep record of ___________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Bills Received From Customers

  2. Bills Received From Supplier

  3. Credit Purchases

  4. Cash Sales

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Correct Option: A
Explanation:

There are various subsidiary books. Bills receivable book is also a subsidiary book which is used to records all bills received from customers.

The total of Bill receivable book will always show ________________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Debit balance

  2. Credit Balance

  3. Nil Balance

  4. None

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Correct Option: A

The bank rate means ____________________________________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Rate of Interest charged by commercial banks from borrowers

  2. Rate of Interest at which commercial banks discounted bills of their borrowers

  3. Rate of interest allowed by commercial banks on their deposits

  4. Rate at which RBI purchases or re-discounts bills of exchange of commercial banks

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Correct Option: D

On drawing a bill of exchange the drawer debit __________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. bill receivable a/c

  2. bills A/c

  3. bills payable A/c

  4. endorsee A/c

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Correct Option: A

____________ is designed as a summary of all the bills accept by the firm for which payment has to be made on specified dates of maturity in future.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Bill receivable book

  2. Bill Payable Book

  3. Cash Book

  4. None

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Correct Option: B

The entry related to honouring the bill is recorded in ____________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. bill receivable book

  2. bill payable book

  3. cash book

  4. none

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Correct Option: C